Why Are Paya Shares Trading Soaring Today

Author: Anusuya Lahiri | January 09, 2023 08:57am

• Canadian fintech company Nuvei Corp (NASDAQ:NVEI) agreed to scoop Paya Holdings Inc (NASDAQ: PAYA), a leading provider of integrated payment and commerce solutions in an all-cash transaction at $9.75 per share for total consideration of $1.3 billion.
• The purchase price is a 25.2% premium on Paya's January 6 closing price of $7.79.
• Nuvei's Chair and CEO, Philip Fayer, said, "It will accelerate our integrated payment strategy, diversify our business into key high-growth non-cyclical verticals with large addressable end markets and enhance the execution of our growth plan."
• "We continue to see strong momentum in our high-growth and underpenetrated middle market partners in durable end-markets, and believe that Nuvei's resources will enable us to continue our mission of solving complex business problems with easy-to-use payment solutions," CEO Jeff Hack said. 
• Nuvei will acquire all remaining shares not tendered in the tender offer through a second-step merger at the same price. 
• The transaction will likely close by the end of the first quarter of 2023.
• Nuvei expects to finance the acquisition with a combination of cash on hand, an existing credit facility, and a new committed $600 million first-lien secured credit facility.
• The proposed transaction will likely deliver up to $21 million of estimated run-rate cost synergies within 24 months and provide attractive revenue synergy upside potential by bringing Nuvei's global capabilities as additional offerings to Paya's partners and customers. 
• The transaction will likely be accretive to adjusted EPS in 2023.
• Nuvei held $754 million in cash and equivalents as of September 30, 2022.
• Price Action: PAYA shares traded higher by 24.8% at $9.72 in the premarket on the last check Monday.

Posted In: NVEI PAYA